India witnessed a transformative shift in its energy landscape during the first quarter of 2024, adding a record 13,669 megawatts (MW) of power generation capacity.
Notably, 71.5% of this new capacity came from renewable energy sources, marking a pivotal moment as coal’s share in total power capacity fell below 50% for the first time since the 1960s. This milestone is highlighted in a recent report by IEEFA South Asia, Ember, and JMK Research. This shift is a significant stride towards achieving the Indian Government’s ambitious target of establishing 50% cumulative power generation capacity from non-fossil fuel sources by 2030, as outlined in the POWERup quarterly report by the Institute for Energy Economics and Financial Analysis (IEEFA). Globally, the trend away from coal is evident, with the G7 countries committing to phasing out all unabated coal power generation by 2035. The demand for coal in these nations hit record lows in 2023, the lowest since 1900, reflecting a broader move towards sustainable energy.
In India, the renewable energy sector has seen remarkable growth. The issuance of tenders for utility-scale projects surged past 69 gigawatts (GW) in FY2024, significantly exceeding the government’s target of 50GW. This robust activity underscores India’s commitment to expanding its renewable energy infrastructure. India now ranks third globally in solar power generation, as highlighted in Ember’s fifth annual Global Electricity Review. The country’s solar generation increased by 18 terawatt hours (TWh) in 2023, making it fourth in terms of annual solar energy growth worldwide.
However, despite these advancements, India remains heavily reliant on coal, which still accounts for over 70% of its electricity generation. The Central Electricity Authority anticipates a shortfall in hydropower, potentially increasing dependence on coal, especially during nighttime when solar power is unavailable.
The growth in the renewable sector has been driven not only by central initiatives but also by active engagement at state and international levels. For instance, Gujarat Urja Vikas Nigam Limited (GUVNL) and Rajasthan Urja Vikas Nigam Limited (RUVNL) have played significant roles in the dynamic tendering ecosystem. Despite facing challenges such as import duties and local manufacturing requirements; stakeholders are optimistic about the future of India’s renewable energy sector. They are confident that the tendering capacity will surpass the 50GW target again in FY2025.
The continued expansion of renewable energy is critical for India’s long-term energy security and environmental sustainability. This historic shift away from coal towards renewable energy sources represents a crucial step in aligning with global efforts to combat climate change and reduce carbon emissions.
